BNB has just risen above the 50-day moving average, and an analyst observed this critical spot and stated that this is a perfect opportunity to accumulate BNB.
As shown in the chart below, BNB has been struggling to get going under the 50-day moving average. With the geopolitical tensions rising, the coin crashed from as high as $880. The free fall came to an end only after the price hit $630. The price materialized as investors sought safe havens amidst the prevailing uncertainty during that period.
The price action at this level suggests that investors began shifting from risk-off behavior to selective accumulation, treating the $630 zone as an area of perceived value after the sharp correction. In simple terms, once panic selling subsided, buyers who viewed the drop as an overreaction started entering the market, helping to slow the decline and stabilize price action.
BNB reclaims 50-day moving average
However, gone are the days when BNB was struggling below the 50-day moving average. With BNB now trading above this level, it will be important to see if BNB can manage to close above the 50-day MA going forward.
If this happens along with an increase in volume and the presence of higher lows, the probability that there is a real shift in momentum toward buyers would be high.
Structure is yet another consideration in this analysis. If BNB manages to continue higher and holds onto higher lows while remaining above the MA, then buyers may have started dominating the shorter-term price action.
BNB crossed above 50-day MA twice but could not sustain
For instance, over the past month, there were several instances where BNB pushed past the 50-day MA but lost momentum just after clearing this level, and as such, it fell back below it. These moves suggest that prior attempts lacked strong follow-through buying pressure, making them more like short-lived spikes rather than sustained trend reversals. The key question now is whether this current move can behave differently.
Traders will be most concerned with whether BNB can maintain its position above its 50-day moving average on a close-by-close basis, rather than merely testing this level intraday. The acceptance of this level in combination with increasing volumes and higher lows will add credence to the argument that momentum may be starting to shift towards the bulls.
Also, the market structure will play an important role. In order for BNB to start respecting higher lows and maintain itself above its moving average, there should be an understanding that bulls are in control.
On the other hand, if price quickly slips back below the 50-day MA again, it would reinforce the idea that the market is still in a broader consolidation phase rather than a confirmed uptrend.
Analyst says it’s the best time to accumulate
But let’s forget about what might happen and focus on what has already happened—BNB has crossed above the 50-day MA. An analyst who goes by the pseudonym Crypto Patel stated that this is the best time to accumulate BNB.
But will BNB actually follow the analyst’s predictions?
Let’s check the technical side of the price movement. As shown in the chart below, BNB has formed the double bottom (W) pattern.
Double bottoms are reversal formations that appear at the end of a downtrend, implying that there will be less pressure from sellers and perhaps even a trend reversal in the future. The pattern contains two troughs occurring at about the same price levels, but with an upward swing separating the troughs.
The initial trough is created when sellers drive the price down sharply, but buyers eventually enter the market and result in a temporary reversal. Subsequently, the price drops again to the same level but with reduced selling pressure and creates a new trough.
The neckline is defined as the resistance created during the temporary reversal between the two troughs. When price surpasses this resistance strongly, it marks a breakout of the pattern formation.
In terms of a trader’s behavior, the following trends can be observed in the course of the development of the pattern. Initially, the market is characterized by fear and panic selling.
At the point of the first bounce, some traders interpret this as a momentary relief rally, whereas other traders start their buying process carefully. During the second bottom formation, professional traders look out for indications of exhaustion on the sellers’ side, such as low trading volumes and weak momentum in the downward direction.
Given that BNB continues the double bottom pattern, it should reach the upper trendline (red shown in the chart), which is above the $680 price level. For the price to hit $700, the bullish momentum should be maintained even after the price has crossed the $680 level.
It usually consists of strong momentum, and this will be reflected in increased trading volume, showing real conviction behind the move. Without volume, the breakout can often fail and turn into a false move.
